Kelly and Mark are a married couple that file a joint tax return. Kelly owns a...

 

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Kelly and Mark are a married couple that file a joint tax return. Kelly owns a 30% in a partnership that operates a retail business. Her share of partnership income is $180,000. Her allo- cable shares of W-2 wages paid by the partnership to its employees and unadjusted basis of qualified property are $50,000 and $1,000,000. Kelly and Mark's total taxable income for the year was $305,000. a. What is the QBI deduction that Kelly and Mark can take on their tax return this year? b. Assume, instead that Kelly and Mark's total taxable income for the year was $400,000. What is the QBI deduction that Kelly and Mark can take this year? c. Assume the partnership was a service partnership and total taxable income was $400,000. What is the QBI deduction that Kelly and Mark can take this year? Kelly and Mark are a married couple that file a joint tax return. Kelly owns a 30% in a partnership that operates a retail business. Her share of partnership income is $180,000. Her allo- cable shares of W-2 wages paid by the partnership to its employees and unadjusted basis of qualified property are $50,000 and $1,000,000. Kelly and Mark's total taxable income for the year was $305,000. a. What is the QBI deduction that Kelly and Mark can take on their tax return this year? b. Assume, instead that Kelly and Mark's total taxable income for the year was $400,000. What is the QBI deduction that Kelly and Mark can take this year? c. Assume the partnership was a service partnership and total taxable income was $400,000. What is the QBI deduction that Kelly and Mark can take this year?

Answer rating: 100% (QA)

Answer Basic QBI Deductions are 20QBI Limitation fo... View the full answer